Tim Jerzyk

SVP, Investor Relations

Asset Turnover by Segment for Yum! Peers

2009 Asset Turnover

Starbucks US 3.93 Yum! China has world class asset

Yum China 2.31 turnover delivering 2x turns
consistently for many years
Starbucks Intl 1.80
Burger King EMEA/APAC 1.09
McDonalds APMEA 1.02

2009 Operating Profit/Assets

Yum China 0.38 Yum’s aggressive development in

McDonalds US 0.31 China is paying dividends as
profitability over assets are industry
Starbucks US 0.29 leading
McDonalds APMEA 0.23
McDonalds Europe 0.23

2
 YRI IR Day – May 18, 2010

Driving Aggressive International Expansion

and Building Strong Brands Everywhere
 Information herein is as of 4/15/10

This presentation will include forward-looking

statements that reflect management’s expectations
based on currently available data. However, actual
results are subject to future events and uncertainties.
The information in the presentation related to
projections or other forward-looking statements may
be relied on subject to the safe harbor statement
posted on our Web site: www.yum.com.
 Today’s Agenda

Time Topic Presenter

Tim Jerzyk
SVP, Investor Relations & Treasury
12:30pm Opening Remarks
Graham Allan
President , YRI
Luigi Bonini
12:45pm Lunch/Product Demonstration
VP Food Innovation

1:30pm Realizing YRI’s Full Growth Potential Graham Allan

Micky Pant
2:00pm Building Leading Brands Everywhere CMO, YRI
President, Global Branding, YUM

Graham Allan
2:45pm Q&A
Micky Pant

3:15pm Break

Pat Grismer
3:30pm Shifting Portfolio Towards Higher Growth
CFO , YRI

Graham Allan
4:00pm Wrap Up and Q&A
Pat Grismer
 Lunch

Product Demonstration
Realizing YRI’s Full Growth Potential

Graham Allan
President, YRI
 YRI Growth Potential Remains Robust

• Positive Long-Term Outlook for all Brands

• Near-Term Less Clear but Some Promising Signs

• Strong Underlying Growth Model for Division

8
 Enviable Brand Portfolio

Nestlé P&G

Toyota LVMH

One of only five companies with two top 100 brands1

1Business
9
Week 2009 100 Best Global Brands
Our Brands Enjoy Formidable Strategic Positions

• Expansive Global Reach

• Limited Number of Global Competitors

• Strong Infrastructure with High Entry Barriers

10
 Vision Unchanged:
Build the World’s Leading Brands

• Bigger (and broader) than McDonald’s

• World’s premier casual dining brand

• Largest global pizza delivery concept

• Fastest-growing international restaurant brand

11
KFC Strategy Offers Excitement to Consumers

Familiar Discovery
(Core Menu Innovation) (New Sales Layers)

12
 With Three Critical Sales Driving Actions

Core Menu Sales Layer

Value Focus
Innovation Momentum

13
 Pizza Hut Strategy Based on Channel Separation

True casual dining execution Greater focus on execution

Centering around affordability Simplifying operations platform

14
 PH Dine-in Focusing on Customer
Experience for Different Occasions

• Enhanced Menu Variety

• Daypart Relevance

• Branded Value

• Warm and Friendly Service

15
 Delivery More Functional

• Speed

• Value

• Quality
Indonesia

16
 Sales Environment Challenging

YRI Same-Store Sales Growth

6%

1%
Flat

-2% -2%
Q1 Q2 Q3 Q4 Q1

2009 2010

Spend Declines Driving Trend

KFC Performance Stronger than Pizza Hut 17
 Signs of Recovery in Developing World

Latin America Asia Middle East

Pizza Hut Indonesia KFC/Pizza Hut UAE

KFC Guatemala

Strong Transactions Driving Growth

18
More Mixed Picture in Developed World

UK SOPAC France

Pizza Hut UK KFC France – 100th Unit

KFC Australia

Value, Innovation and Communication Key Drivers

19
New Unit Growth Remains Solid

Gross New Builds

991

958

900+
887

2007 2008 2009 2010F

20
 Growing Confidence about 2010

• Sales recovery in key regions, but performance still uneven

• Expecting Stronger 2nd half than 1st

• Benign Cost Environment

• Development plans on track

• Tight G&A Control

Expect to deliver at least 10% op profit growth

21
 Leading Position in Developing World

Total Units* Net New Unit Growth

(2007 – 2009)
5,781 1,361

4,115
712

Note: Developing world; World Bank Definitions; Excludes China Source: Public Disclosures
22
* Year-end 2009
 Giving YRI Higher Relative
Exposure to Developing World

Unit Distribution

21%
40%

Developing
79%
60%
Developed

Note: Using World Bank definitions of developing countries; Excludes the U.S. and China 23
Source: Public disclosures 2009
 Long Runway for Growth for Our
Brands in the Developing World
Consuming Class
Penetration (# Stores / MM)
42

PH
25 KFC

11
17 2
5
9 2
3

US China YRI
Developing*
Consuming Class 300 MM 400 MM 1,100 MM
# of Stores YE ‘09 ~ 12,800 ~ 4,000 ~5,300

Source: Euromonitor data 2010; Consuming Class – Annual disposable income > $5,000 24
* Represents Top 25 Developing Countries; 90% of Total Developing Units
 Capital Deployed to Capture
Additional Growth and High Returns

India
Developing World
Russia

France
Developed World
Germany

25
 Equity Estate Will Shift Towards
Faster-Growing Developing World
% of Total Equity Units

40%
65%

60%
35%

2009 2015
Developing Developed
26
Note: World Bank Definitions
YRI Business Model Built on Strong Franchise Base

• Well Capitalized Partners

• Partners Hungry for Growth

• Highly Collaborative Relationship

• Strong Alignment on Strategies

27
 YRI: Yum’s Greatest Potential

• Global Reach and Capability

• Power Brands with Strong Competitive Positions

• Huge Runway in the Developing World

• Attractive Growth Opportunities in the Developed World

• Managing Portfolio for Higher Growth

28
 Micky Pant
President of Global Brand Building
Yum! Brands, Inc.
“The Defining Global Company that Feeds the World”
Yum! approach differs from key competitors

1. Portfolio of Brands addressing multiple

consumer needs

2. Building “Global Brands with a Local Heart”

Multiple Brands allow access to key market segments

Global Food Service Market

$1500 Billion
> Delivery

Street Food

Quick Service
Restaurants

Full Service Restaurants

Data Source: Euromonitor

KFC and Pizza Hut are already Global
Taco Bell is the 3rd growth engine

107 countries 8230 stores*

Lagos, Nigeria

90 countries 5153 stores*

Hanoi, Vietnam

20 countries 251 stores*

*YRI – i.e. without US and China

Bangalore, India
Building “Global Brands with a Local Heart”

People Product Place Price Promotion

 KFC continues strong growth in YRI

Global “Plan to Breakthrough” in place:

• Menu evolving to reflect consumer needs

• Innovation & Value - key growth drivers
• Estate refurbishment at encouraging pace
KFC’s culinary heritage sets it apart
The Colonel’s Secret Recipe

Freshly prepared in Store

Consumers appreciate “Freshly Made” products

Australia UK

India Korea
We permit significant localization of menus
India
Malaysia Philippines

Brazil Japan
This allows continuous Menu Evolution

familiar discovery
France is growing source of new product ideas
“Krushers” succeeding in multiple markets
Breakfast tests in Asia and the UK
Value Menus are in place in all key markets
South Africa UK

Middle East France

Labor economics permit Delivery in many countries
Progress continues on refurbishing KFC Stores

Percent of Units Re-Imaged in YRI

89%

77%

66%

54%

36%

22%

„07 „08 „09 ‟10F ‟11F ‟12F

KFC Advertising Showcases Global Strength
Japan UK

Singapore

Australia Africa
Pizza Hut fulfills two distinct consumer needs

Affordable Casual Dining Home Meal Replacement

Pizza Hut is the world’s largest casual dining brand

Aberdeen, Scotland
 Pizza Hut Dine-in Growth Drivers

• Day Part expansion, especially Lunch

• Compelling Value
• Greater Menu Variety
• Occasion specific Marketing
• Continual Store refurbishment
 Lunch success started in Latin America
Latin America
UK

Dubai
Europe Hong Kong
Value Programs especially relevant currently

UK Latin America

Europe Hong Kong

Converging on a Global Menu
 Greater Product Variety
Appetizers, Salads, Pastas, Beverages, Desserts
 Occasion Specific Marketing
Poland UK

Indonesia

Philippines
India
 Steady Pace of Dine-In Reinvestment
Percent of Units Reimaged - YRI

98%

89%

75%

59%

42%

<20%

„07 „08 „09 ‟10F ‟11F ‟12F

Pizza Delivery
 PHD (Pizza Hut Delivery) geared to this

Now in 19 countries, 125 stores:

• Delivery Only Stores
• Simplified operations
• Faster Ovens
• Local Store Marketing

PHD in Jakarta, Indonesia

Success comes from Speedy Operations
Taco Bell
Taco Bell recent openings encouraging

Dubai Spain

India Panama
Taco Bell India particularly strong start
Taco Bell Geographical Expansion to continue

Seoul, Korea
“The Defining Global Company that Feeds the World”
 Q&A

Graham Allan
Micky Pant
Shifting our Portfolio Towards Higher Growth

Pat Grismer
CFO, YRI
 YRI Composed of Three Growth Segments

% of Op Profit
3-Year
2006 2009 CAGR

Developing 35% +15%

42%
Developed 1%
(Underpenetrated) 3%

Developed 64%
55% +4%
(Established)

Note: World Bank Definitions; Underpenetrated represents France & Germany 66

 Growth Strategies Vary by Segment

• Expand Competitive Lead in Existing Markets

Developing World • Enter New Markets
• Increase Equity Exposure (India, Russia)

Developed World • Narrow Unit Gap to Competition

(Underpenetrated) • Realize Equity Returns (France, Germany)

• Capture Remaining Development Potential

Developed World
(Established) • Improve Margins
• Evaluate Ownership Position
67
Developing World Driving Unit Growth

Units CAGR

13,962 +4%
12,273

6,145 +9%
Developing 4,706

Developed
(Underpenetrated)

+0%
Developed 7,363 7,480
(Established)

2006 2009
Note: World Bank Definitions; Underpenetrated represents France & Germany 68
KFC Leads McDonald’s in Many Developing Markets

2007 - 2009 2009 2009 KFC Index

Developing Market
KFC Units Added KFC Units to McDonald’s

South Africa 143 585 443

Indonesia 110 366 373

Malaysia 106 468 241

Thailand 99 394 303

Russia¹ 92 154 63

Vietnam 52 76 N/A

India 51 72 40

Poland 30 108 46

Source: Euromonitor data 2010; Consuming Class = Annual disposable income > $5,000
69
¹Includes Rostik’s-KFC Acquisition
 Pizza Hut Also Dominant in Developing Markets

Pizza Hut Dine-In

% Market Share
Chain Full-Service Restaurants
26%

18%
16%
10% 10%

Malaysia Indonesia Brazil Philippines India

Rank #1 #1 #1 #2 #3

Source: Euromonitor data 2010 70

 YRI Poised to Capitalize on
Developing World Growth Opportunity
2020 10+ yr
2009
Developing Market Consuming Class YRI Unit
YRI Units
(MMs) Potential
India 230 650 2,500+

Africa 612 NA 2,000+

Indonesia/Vietnam 827 225 1,500+

Pakistan/Egypt 254 300 1,000+

Russia 173 150 750+

Brazil 82 200 750+

TOTAL 2,178 1,525 8,500+

Source: Euromonitor data 2010; Consuming Class = Annual disposable income > $5,000 71
 India and Russia: Our Lead Equity Investments
in the Developing World

• Massive market potential

• Disposition to Western concepts India

• Established local infrastructure

• High-returning investments

Russia

72
Building Three Powerful Brands in India

• 72 stores in 13 cities; 46% equity

• Double-digit SSSG for 2009 & YTD 2010

• 158 stores in 34 cities; 100% franchised

• “Most Trusted Food Service Brand” last 5 years1

• Opened first store in Bangalore in March

• Averaging ~1,000 trans/day

1 73
Source: Economic Times of India
 Reaching Critical Juncture in Russia

• Exercised option March 31

• Expect deal completion June 30
• Strong unit-level economics
• Positive sales momentum

Significant Long-term Market Potential:

McDonald’s Russia ~$250MM Annual Profits
74
 Very Long Runway for Growth
in Equity Developing Markets
Units
India Russia

1,000

298 300
173

2009 2015F 2009 2015F

$100MM+ 2015 Profit Potential

75
High Expectations for the Developing World

7%+ Net Unit

15%+ Profit Growth
Development

• Consuming Class Growth • Strong SSSG

• Strong Competitive Positions • Leverage on Equity

Investments

Increase YRI Profit Growth Contribution

76
 France & Germany: Underpenetrated
Developed Markets with Huge Potential

France & Germany Units

(2009)
2,521

160

77
Note: World Bank Definitions; Source: Public Disclosures
Confident in our Ability to Succeed in these Markets

France

• Highest AUVs in the world

• Demonstrating concept leadership

Germany

• Strong transaction volumes

• Significantly outpacing industry SSS

Invested $500MM+ in these Markets 78

 Reaching An Inflection Point in
Our Underpenetrated Developed Markets

Total Units
(France & Germany)
500

300

160
92

2006 2009 2012F 2015F

Profits
(MMs)
1 20 60 125

79
*Includes France / Germany BMU
 Room Still to Grow in Developed World

Developed (Established) Markets

Consuming Class Penetration
(# Stores / MM)
61
TB 17
40
PH 19
23
13
KFC 25

U.S. SOPAC UK Other

Developed*
Consuming Class 300 MM 25 MM 60 MM 275 MM

Source: Euromonitor data 2010; *Consuming Class – Annual disposable income > $5,000
80
*Includes Ireland, Japan, Korea, Czech Rep, Saudi Arabia, and Canada
 Driving Hard Toward 15%+ Margins

Restaurant Margin
Key Actions

• Sales leverage
15%
• Productivity initiatives
11%
• Refranchising

2009 Target

81
Expect Portfolio to Shift Towards Growth Markets

2009 2015
% Op Profit
3%

10%

40%
42%
55%
50%

Developing Developed Developed

(Underpenetrated) (Established)

82
Taco Bell: Early Stages of Massive Growth Lever

Prove Profitability Scale Store Proven

and Expand Penetration In Franchisable
Concept Targeted Markets Concept

100 +
Taco Bell New-Unit Development

60

20
5

2009 2010 2012 2015

83
 YRI Primed for Higher Growth

• Long Runway for Continued Growth in Developing World

• Poised for explosive growth in Underpenetrated Developed World

• Maximizing returns in Established Developed World

• Significant Long-Term Upside at Taco Bell

84
 Q&A

Graham Allan
Pat Grismer